Emer Currie (Dublin West, Fine Gael)
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67. To ask the Minister for Finance for an update on the consultation on future reform of the Research & Development (R&D) Corporation Tax credit; his policy priorities in relation to any future reform; and if he will make a statement on the matter. [36336/25]

Emer Currie (Dublin West, Fine Gael)
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68. To ask the Minister for Finance the number of companies availing of the Research & Development (R&D) Corporation Tax credit in each of the past ten years; the total cost to the exchequer in each year; and if he will make a statement on the matter. [36337/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 67 and 68 together.

The Research and Development (R&D) Tax Credit is an important feature of the Irish CT system. It forms part of a suite of corporation tax measures that ensures Ireland remains an attractive location for both domestic and inward investment and building an innovation-driven domestic enterprise sector. The primary policy objective is to increase business R&D in Ireland, as R&D can contribute to higher innovation and productivity. Ireland has successfully created a globally competitive innovation hub, and the R&D tax credit has played a large part in that success. Both domestic and multinational firms in Ireland support thousands of Irish jobs, Irish companies and Irish education institutions.

Since its introduction, in 2004, the R&D tax credit has grown both in terms of claimant companies and exchequer cost. In relation to the Deputy’s query, the table below sets out the number of companies availing of the R&D tax credit and the total exchequer cost for the past ten years in respect of which data is available for.

Revenue provide further statistics on the R&D tax credit as part of their publication of the document “Research & Development (“R&D”) Tax Credit Statistics” which can be accessed on their website. www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/r-and-d-tax-credit-statistics.pdf.

As one of the largest tax expenditure items, the R&D tax credit is reviewed regularly under the Department of Finance’s Tax Expenditure Guidelines, to ensure that it is effective and delivering on the intended policy objective. Budget 2025 announced that this review would be undertaken this year, and the Programme for Government ‘Securing Ireland’s Future’ made a commitment to examine options to enhance the R&D tax credit, reward innovation and digitalisation.

Work on the review of the R&D tax credit regime is underway this year and commenced with a ‘Public Consultation on the R&D tax credit and on Options to Support Innovation’. See: assets.gov.ie/static/documents/public-consultation-on-the-research-development-tax-credit-and-on-options-to-support-i.pdf. The consultation closed on 19th May.

26 responses to the consultation have been received from a range of respondents, including companies engaged in R&D activities, advisory firms, representative bodies and Government Departments.

The feedback received will help to inform policy considerations for the R&D regime and in relation to innovation, to ensure that Ireland remains attractive as a location for quality employment and investment in R&D by both domestic and international companies. Work on the R&D review will continue to progress throughout the year and will inform my policy deliberations in advance of Budget 2026, in line with Programme for Government commitments. www.gov.ie/en/department-of-finance/consultations/public-consultation-on-the-research-development-tax-credit-and-on-options-to-support-innovation/